The German government is prioritizing innovative approaches to address the shortage of housing, focusing on repurposing vacant commercial spaces and streamlining construction processes. Housing Minister Verena Hubertz recently highlighted the potential of empty properties, resulting from shifts in work patterns and consumer behavior.
A new program, “Commercial to Residential” is being funded within the government’s budget draft, specifically aimed at transforming these spaces into living areas. Minister Hubertz cited a pilot project in Hamburg, offering temporary “pop-up housing” within a former shopping center, as a successful example of rapid housing creation.
She emphasized the potential of utilizing the rooftops of supermarkets, owned by companies like Lidl and Aldi, for residential development, suggesting a “cross-selling” model where the companies receive rental income. Furthermore, the Minister proposed the possibility of adding one or two stories to existing rows of houses, particularly in cities like Berlin.
Recognizing the need for greater efficiency, Hubertz stressed the importance of expedited permitting processes and encouraging new construction methods. The minister referenced “construction acceleration” as critical to reducing costs, with a focus on modular and serial construction techniques, potentially lowering expenses by 30 to 40 percent.
While no specific annual housing construction target has been established following the alteration of the coalition agreement, the focus is shifting to measuring progress based on speed and affordability. The Minister expressed ambition to halve the current construction costs, currently averaging €5,000 per square meter, to €2,500.
Additionally, Minister Hubertz signaled her intention to extend and rigorously enforce existing rent control measures, seeking to address non-compliance. Looking ahead, Justice Minister Stefanie Hubig will be establishing an expert group to study the market for furnished housing, identifying and correcting practices deemed unfair.
